Each month People, Spaces, Deliberation shares the blog post that generated the most interest and discussion. In May 2015, the featured blog post is " “We are looking at gold and calling it rock”: Supporting communities to calculate the replacement costs of their communal lands and natural resources".
Across Africa, Asia and Latin America, investors are increasingly approaching rural communities seeking land for logging, mining, and agribusiness ventures. In response, international and national advocacy organizations are stepping forward to provide support to communities in negotiations with investors, often with a focus on ensuring adherence to international laws such as the right to free, prior, informed consent (FPIC). Yet even in situations when investors have followed FPIC principles and conducted a formal “consultation” to seek community consent to their proposed business venture, these consultations are generally conducted in a context of significant power and information asymmetries. Communities are frequently pressured by high-level government officials to consent to deals that they do not fully understand or desire. Community members may not be aware of the rental value of their land on the national market, the expected annual profits the investor will gain from the venture, the overall net worth of the investors’ company, and other financial information critical to negotiating a fair contractual agreement, including the value they themselves are deriving from their common lands. As a result, they have difficulty calculating an appropriate rental cost that leaves them in an equal or better position than before the investment.